(CLO) China imposed retaliatory tariffs on a series of US agricultural products following Washington's move to increase tariffs, pushing trade tensions between the two countries to a dangerous level.
China quickly retaliated against the new US tariffs by announcing additional import tariffs of 10% to 15% on a range of US agricultural and food products.
The move escalates tensions between the world's two largest economies, pushing relations between the two countries closer to a full-blown trade war.
Beijing also imposed export and investment restrictions on 25 US companies, citing national security concerns. However, China did not impose the same harsh sanctions as it did in response to the Trump administration in early February.
Mr. Trump announced that he would increase tariffs on Chinese imports by 10% from March 4. Photo: AI
The retaliatory tariffs were announced after the US officially imposed an additional 10% tariff on Chinese goods from 05:01 GMT on March 4. Washington's decision was in response to "China's inaction" in controlling the ingredients for the production of fentanyl - a dangerous synthetic drug that is flooding into the US.
Beijing has denied the accusations, saying the US is using fentanyl as a tool of blackmail and stressing that China has some of the world's strictest anti-drug policies.
Analysts say China still wants to find a deal to ease tensions, but the risk of escalating into a full-blown trade war is high.
The US has steadily increased trade pressure on China, especially last year when the administration of former President Joe Biden doubled tariffs on Chinese semiconductors to 50% and quadrupled tariffs on Chinese electric vehicles to more than 100%.
The new 20% US tariff will apply to many consumer electronics products imported from China such as smartphones, laptops, game consoles, smartwatches, speakers and Bluetooth devices.
Shortly after the tariffs took effect, China previously announced that it would impose an additional 15% tariff on US chicken, wheat, corn and cotton, and a 10% tariff on US soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables and dairy products, starting from March 10.
China's Ministry of Commerce has accused the United States of seriously violating World Trade Organization (WTO) rules and undermining the foundation of economic cooperation between the two countries. Beijing has vowed to "resolutely defend its legitimate rights and interests" as trade tensions continue to escalate.
In addition to China, the US’s two other major trading partners, Canada and Mexico, will also be subject to a 25% tariff on most exports, except for energy, which will be taxed at 10%. This is the next step in Mr. Trump’s protectionist trade policy to reduce the trade deficit and protect domestic industry.
Economists warn that prolonged trade tensions could have a negative impact on both economies. China’s cutback on U.S. agricultural imports could hurt American farmers, while Washington’s retaliatory measures could raise prices on imported goods, hurting inflation and consumer purchasing power.
Some Chinese companies have shifted exports to other countries such as Vietnam and Mexico to avoid US tariffs, while ASEAN has become China's largest export market since 2023.
China’s total exports are expected to rise 5.9% to $3.58 trillion in 2024, with less than 15% of those going to the US, a sign that China is reducing its reliance on the US market, a trend that began in 2018 when Trump launched his trade war.
However, observers say the two countries may sit down for talks in June, when Mr Trump is expected to meet with Chinese President Xi Jinping. The continued escalation of tariffs could put pressure on both sides to find a deal to avoid further damage to both economies.
Hoai Phuong (according to Global Times, SCMP, Newsweek)
Source: https://www.congluan.vn/trung-quoc-dap-tra-thue-quan-my-cang-thang-thuong-mai-leo-thang-post336982.html
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